Should the Fed skip the small talk and become a quasi-primary dealer?

The Federal Reserve’s intervention in recent US repo market activity suggests that it alone has the ability and resources to maintain orderly markets in the face of liquidity rules and substantial US Treasury issuance. Cynically, we ask if the Fed is going to supply liquidity to primary dealers, should it become a dealer directly or something like it? There’s a self-referencing, double loop of logic to it, but still a point to be made.
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